The management quality is fantastic. I have been owning and holding this company for around 10 years now. What is interesting is the way they have been able to move away consistently from low margin, low ROE businesses. But one has to be vigilant in terms of the future. The scope for improving margins is more limited now. Their ability to grow profits at 25%+ for the next 5 years is not very certain, at least to me. The composite cylinder business area is an interesting one and may surprise on the upside. Otherwise, this is likely to to have muted growth for the next few years (10-12% revenue), before actual GDP growth kicks in. PE re-rating options are limited, in my opinion.
Posts in category Value Pickr
MOLD TEK PACKAGING—dividend plus growth (02-10-2015)
Not met yet, meeting got cancelled.
GRUH Finance – mini HDFC (02-10-2015)
yes Gurjot I have read it somewhere and then after reading that report I bought Gruh finance.
I definitely find out and share with you.
TAKE SOLUTIONS LTD- will you take it? (02-10-2015)
I couldn't find any notes or details on the low taxation in AR . Take is located on the shriram SEZ perungulathur near chennai. The SEZ must be providing tax holiday, not sure about the duration available in Takes case.
GRUH Finance – mini HDFC (02-10-2015)
Good points ...I agree due to dividend we must value gruh on pe basis . If it grows 25% i think PE of 25 is ok - which means on expected eps of about 7 for fy ended 31.03.2016 we get abount 175 levels.Post this time correction can happen and then should start discounting eps for the next year .
Now if we look at gruh on book basis at 8 p/b we get about 160 .
So 160-175 can be strong floor . If this does not happen then either time correction or strong break out about 320 to signal that something good is happening in this co which we do not fathom.
GRUH Finance – mini HDFC (02-10-2015)
Chirag - How do you know this? Can you share more details on this? Assuming this is their credit appraisal process, which executed over a number of years certainly builds a strong moat which cannot be replicated easily by any new HFC.
GRUH Finance – mini HDFC (02-10-2015)
Very much agree with you on first point.
Moreover Gruh finance being the company promoted by HDFC has an access to low cost of funding ( thanking due to higher rating by the rating agency ). Gruh finance has long track record of weathering all kinds of economic situation compared to repco home finance ( i don't doubt repco on that ).
Gruh finance average ticket size is of 6 - 8 lacs which I think no big home finance companies would be interested in because that would be from non salaried people and unorganized sector which is very difficult and requires lots of energy and expertise for credit evaluation.
Gruh finance has in house credentials of 35 check points for evaluation of a loan applicant and based on that merit the interest rate of the loan is derived. So interest rate depends on case to case basis.
No high level official can do bias on the interest rate accreditation system.
That's the reason Gruh finance is able to maintain the above average performance and enjoys the premium in the market.
US based NRI’s – How do you guys invest in equity now? (02-10-2015)
@bijoy_ajj @Patel Yes you can open NR trading and Demat Account by linking it to PINS account. Account can be open either NRE or NRO status according to your requirements. Also, resident stocks can be transferred to NR status.Already sent you a mail with clear understanding. Yes, there is a paperwork, but not too complicated. I deal with NR account, I can solve the same.
Alembic & Alembic Pharma (02-10-2015)
@nikhilupai Check Ankit's post on Jun 20